What are the common financial jobs and what do they do?

For many international students, their majors are often related to the financial industry. Finance has been a popular industry for many years and is a common destination for international students seeking employment upon their return to their home country. 

However, due to variations in how financial positions and job responsibilities are defined in different countries, when searching for financial positions on Aniday, you may come across a wide array of job titles and diverse skill requirements, making it challenging to know where to begin. So, what are the common financial positions and what exactly do they do?

This chapter primarily focuses on explaining the classification of financial industry positions and the skills required for these positions, aiming to provide valuable knowledge for those applying for financial positions.

The Essence of the Financial Industry

To understand what financial positions entail, you need to first understand the essence of the financial industry.

The widely accepted definition of the financial industry is that it is an economic activity that uses money itself as the operating target, aiming to increase money through monetary circulation.

The financial industry refers to a special sector engaged in financial products, including banking, insurance, trusts, securities, and leasing.

At its core, finance is about the exchange of credit.

The Work of the Financial Industry

After understanding the concept of the financial industry, it's important to note that when a medium of exchange with value is introduced, national economies and international trade begin to operate. As goods start to circulate, the value of money facilitates this circulation. As people gradually discover that achieving a certain level of credit enables the transfer of ownership rather than physical delivery, a capital market is formed.

In the capital market, price fluctuations, driven by information asymmetry, differences in internal and external demands, and policy changes, lead to changes in the prices of traded assets.

Price fluctuations result in profits and losses, and one role of financial positions is to manage these fluctuations, control financial market stability, and manage risk.

Some of the work in the financial industry is about earning profits, which is relatively straightforward to understand. However, with profit comes risk, and managing risk is also a critical part of financial work. As a result, various financial derivatives have been developed to profit from price fluctuations and mitigate risk, adding to the complexity of financial work.

Additionally, the formation of capital markets and asset securitization has given rise to activities such as investment, financing, and credit. This evolution has led to the emergence of institutions like investment firms and credit companies.

Around all these activities, auxiliary industries have emerged to provide services such as technology, information, and intermediation, all falling under the broad scope of the financial industry.

Classification of Financial Positions

From different perspectives and starting points, the financial industry can be classified in various ways. This article divides the financial industry into two major categories: Investment and Fundraising, and Auxiliary Intermediaries.

In simple terms, financial positions can be classified into those that are directly involved in core financial activities and those that provide support and decision-making for other financial roles. Regardless of direct involvement or peripheral support, the essence remains the same: assessing value, understanding value patterns, and applying that knowledge.

Financial positions in the Investment and Fundraising category aim to increase the value of assets to generate excess returns. These positions include roles in banks, equity investment in primary and secondary markets, analysts, traders, bond investment, credit underwriting, and various non-standard (real estate, antiques, foreign exchange, etc.) investment positions.

All of these roles fall under the category of Investment and Fundraising in the financial industry. Positions directly involved in buying and selling financial transactions are considered investment positions.

Financial positions in the Auxiliary Intermediaries category earn revenue by facilitating various financial transactions and providing trading and information services. Examples include investment banking, consulting firms, data service providers, law firms, trading platforms, and more, all falling into the category of Auxiliary Intermediaries in the financial industry.

In simple terms, positions in the Auxiliary Intermediaries category may not directly participate in financial transactions or deeply engage in financial activities. However, their work is instrumental and is applied to the investment and financing operations. These roles provide crucial support for core financial activities.

About the specific classification of financial positions and their job descriptions, we will cover them in the next chapter.

Beware of Pseudo-Financial Jobs

Having learned about the nature of financial positions, it's important to have a general understanding of pseudo-financial positions that can be misleading.

As mentioned earlier, you should distinguish between the nature of the company and the industry of the position. If you work in an investment and financing role in a financial company, it undoubtedly falls under a financial position. However, if you work in positions related to administration, human resources, technology development, sales, and other areas in a financial company, it is not considered a financial role.

Additionally, many positions in the Auxiliary Intermediaries category can be misleading. For example, positions like finance or market research do not necessarily qualify as financial positions and are commonly found in traditional enterprises. However, if the role involves financial due diligence for acquisition projects or research reports for financing, then it falls under the financial category.

Therefore, when it comes to positions in the Auxiliary Intermediaries category, the key factor is to determine whether the position serves investment and financing activities and whether its core work focuses on investment and fundraising.

For international students seeking financial positions, it's crucial to differentiate whether the job you are applying for is a "true" financial role to avoid hindering your future career development.

In Summary

As a highly popular field of study, positions related to finance have always been a major focus for international students seeking employment.

For international students looking for financial positions, after understanding the basic concepts of common financial positions, it's essential to delve into the specific roles within individual financial departments. What do these roles entail on a daily basis? Why are these tasks performed? What kind of job skills are required to join these financial positions? All of these aspects will be explained in the following blog post.